India Targets Triple Cooperative Sector's GDP Contribution by 2023
Union Minister Amit Shah announced plans to significantly increase the cooperative sector's contribution to India's GDP, emphasizing rural development.
Photo by Varun Verma
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Government aims to triple cooperative sector's GDP contribution by 2023
Announcement made at an Earth Summit organized by NABARD and IAMAI
Emphasis on rural development, agriculture, animal husbandry, and cooperation
Key Dates
Key Numbers
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Exam Angles
Constitutional provisions related to cooperatives (97th Amendment, Article 19(1)(c), Article 43B)
Role of cooperatives in rural development, agriculture, and financial inclusion
Economic significance: GDP contribution, employment generation, poverty alleviation
Challenges faced by cooperative societies (governance, capital, professional management)
Government initiatives and policies for strengthening the cooperative sector
Role of institutions like NABARD in supporting cooperatives
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Summary
Union Home and Cooperation Minister Amit Shah recently announced an ambitious plan to triple the cooperative sector's contribution to India's GDP by 2023. Speaking at an 'Earth Summit' organized by NABARD and IAMAI in Gandhinagar, Shah highlighted that this move is part of a broader strategy to ensure India becomes a global leader across all sectors by its 100th year of independence.
He stressed the crucial role of rural development, agriculture, animal husbandry, and cooperation in achieving this vision, echoing Mahatma Gandhi's emphasis on village-centric progress. Essentially, the government is looking to empower cooperatives as a key driver for inclusive economic growth, especially in rural areas, by boosting their economic activity and reach.
Background
The cooperative movement in India has a long history, dating back to the early 20th century, primarily aimed at addressing rural indebtedness and providing credit. Post-independence, cooperatives were seen as a crucial instrument for planned development, rural upliftment, and achieving socialistic patterns of society.
Mahatma Gandhi's philosophy of 'Gram Swaraj' emphasized self-reliant villages, where cooperatives could play a vital role in economic activities. The 97th Constitutional Amendment Act, 2011, granted constitutional status and protection to cooperative societies, making their formation a fundamental right.
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Practice Questions (MCQs)
1. Consider the following statements regarding the recent announcement concerning India's cooperative sector: 1. The Union Home and Cooperation Minister announced a target to triple the cooperative sector's contribution to India's GDP by its 100th year of independence. 2. The announcement was made at an 'Earth Summit' organized by NABARD and IAMAI. 3. The Ministry of Cooperation was established in 2021 with the mandate to strengthen the cooperative movement. Which of the statements given above is/are correct?
- A.1 and 2 only
- B.2 and 3 only
- C.1 and 3 only
- D.1, 2 and 3
Show Answer
Answer: D
Statement 1 is correct: The summary states the plan is to triple the cooperative sector's contribution to India's GDP by its 100th year of independence (2047). The headline's 'by 2023' appears to be a typo, as the summary clarifies the long-term vision. Statement 2 is correct: The summary explicitly mentions the announcement was made at an 'Earth Summit' organized by NABARD and IAMAI in Gandhinagar. Statement 3 is correct: The Ministry of Cooperation was indeed established in July 2021 to provide a distinct administrative, legal, and policy framework for strengthening the cooperative movement. All three statements are accurate.
2. With reference to the 97th Constitutional Amendment Act, 2011, which of the following statements is/are correct? 1. It made the right to form cooperative societies a fundamental right under Article 19(1)(c). 2. It inserted a new Directive Principle of State Policy (DPSP) regarding the promotion of cooperative societies. 3. It added a new Part IXB to the Constitution, dealing with Cooperative Societies, which applies uniformly to all types of cooperative societies across India. Select the correct answer using the code given below:
- A.1 only
- B.1 and 2 only
- C.2 and 3 only
- D.1, 2 and 3
Show Answer
Answer: B
Statement 1 is correct: The 97th Amendment Act, 2011, amended Article 19(1)(c) to include 'cooperative societies' after 'unions and associations', thereby making the right to form cooperative societies a fundamental right. Statement 2 is correct: It inserted a new Article 43B in Part IV (DPSP) which states that the State shall endeavor to promote voluntary formation, autonomous functioning, democratic control, and professional management of cooperative societies. Statement 3 is incorrect: While it did add a new Part IXB to the Constitution (Articles 243ZH to 243ZT) concerning cooperative societies, the Supreme Court in 2021 struck down a major portion of Part IXB (related to state cooperative societies) on the grounds that it encroached upon the legislative competence of state legislatures, as 'cooperative societies' is a state subject. The provisions of Part IXB relating to multi-state cooperative societies, however, remain valid. Therefore, it does not apply uniformly to all types of cooperative societies across India in its original form.
3. In the context of the cooperative sector in India, which of the following statements about the National Bank for Agriculture and Rural Development (NABARD) is correct?
- A.NABARD is primarily a regulatory body for all cooperative banks in India.
- B.It provides direct financial assistance to individual farmers and rural artisans.
- C.NABARD acts as an apex refinancing institution for financial institutions providing credit to agriculture and rural development.
- D.It was established based on the recommendations of the Narasimham Committee.
Show Answer
Answer: C
A) Incorrect. While NABARD plays a significant role in supervising and developing cooperative banks, the primary regulatory authority for cooperative banks (especially urban cooperative banks) is the Reserve Bank of India (RBI), with NABARD having supervisory and developmental functions for rural cooperative banks and Regional Rural Banks (RRBs). B) Incorrect. NABARD is a refinancing institution. It does not provide direct financial assistance to individual farmers or rural artisans; instead, it channels credit through various financial institutions like commercial banks, regional rural banks, and cooperative banks. C) Correct. NABARD is the apex development bank in India with the mandate for facilitating credit flow for promotion and development of agriculture, small-scale industries, cottage and village industries, handicrafts and other rural crafts, and other allied economic activities in rural areas. It provides refinance to various financial institutions. D) Incorrect. NABARD was established on July 12, 1982, based on the recommendations of the B. Sivaraman Committee (Committee to Review the Arrangements for Institutional Credit for Agriculture and Rural Development - CRAFICARD), not the Narasimham Committee (which was related to banking sector reforms).